Extraordinary Genius Chapter 1031 - Microsoft’s internal conflicts

Chapter 1031 – Microsoft’s internal conflicts

Bill Gates frowned as he looks at Paul. This is their director’s meeting. A place for discussion and not a place for you to shout and throw tantrums.
Why is Paul always losing his cool whenever they mention Feng Yu? Is it because Feng Yu said his basketball team would not win the NBA Championships?
As a grown man, he should not be so childish. Everyone should be working together to make Microsoft bigger and better!
“Paul, you must keep your cool. This matter concerns everyone here, and you must not let your anger affect your decision.” Bill Gates said.
“Fine. I object to this partnership with Feng Yu. He wants the absolute majority of the shares, and which one of you can allow this to happen?!” Paul sneered. “Who does he think he is? If we did not support his DVD forum in the past, can he get to where he is now? What did we get in return?”
Microsoft is doing software and has nothing to do with the DVD standard competition. All they need is to write a code to read the DVD drives.
To Paul, Feng Yu can set up the DVD forum is because of Microsoft’s support. If not for Microsoft’s support, how can he get so many PC manufacturers to support his DVD format?
But Paul did not realize that Microsoft’s support is only the icing on the cake. At that time, Feng Yu’s company had already started working with Philips, and Philips had recommended many major European corporations to support Feng Yu. Feng Yu, on the other hand, has his connections supporting him.
Microsoft is the leader among the major corporations now. Still, when it comes to hardware and other electronic products, they are not that influential. If not, Sony will not reject Microsoft’s proposal to use its system for its next-generation PS.
Being the number one in an industry might be advantageous. Still, at the same time, all other companies in the industry will view them as the target. Those hardware manufacturers had been held hostage by Microsoft, and all of them are thinking of ways to get back at Microsoft.
“Paul, it is meaningless to mention the past now. The situation now is Feng can develop the gaming console himself, and we can do it ourselves too. But Feng has a higher chance of succeeding, and his costs will be lower. If we develop the console ourselves, the costs will be higher, and the chances of succeeding will be lower. I don’t deny that if we are willing to invest more funds, we can sell a few billion units, but can we make money?” Ballmer asked.
Because of the hardware manufacturers, Microsoft did not produce their PCs. Once Microsoft starts manufacturing its PCs, all hardware manufacturers will stop using Microsoft operating system. This will be a severe blow to Microsoft because Microsoft had crossed the line. If the other companies did not stop Microsoft, they would be obsolete.
This Gbox is considered Microsoft entering the hardware sector. But luckily, the other hardware companies are not into gaming consoles, and this venture will not affect them. However, this move will still be considered Microsoft’s move into the hardware sector.
All hardware companies will spread rumors that Microsoft product sucks and will not offer any assistance to them. In fact, many of these companies will provide support to Sony and Nintendo to develop new gaming consoles to suppress Microsoft.
Partnering Feng Yu will not only increase the chances of success and also diversify their risks. Although Microsoft can afford losses of a few hundred million, or even a few billions, but who is willing to suffer losses if they can make profits?
Bill Gates tapped on the table and said. “Do you all still remember our target? We want to become a lifestyle necessity! Our initial product is a TV box. In the future, satellite channels will no longer meet people’s demands, and they can use the TV box to watch online programs or surf the internet. This Gbox will use many similar technologies like the TV box. Manufacturing this product will prepare us for our TV box in the future.”
TV box is what Bill Gates wanted. This is a product that is considered an electronic product and a home appliance. It will also not affect the major companies’ profits. If they can get half of the market share, Microsoft will get significant profits!
Of course. Microsoft also does not have the technologies for the TV box, and there is no strong TV box manufacturer in the market. That’s why Microsoft cannot acquire other companies to manufacture this product and has to develop the technologies themselves.
After Microsoft perfected this technology, they can acquire a TV box manufacturer and ditched Feng Yu away to produce their own gaming console.
“Bill, I understand what you say and know about our plans. But if we were to partner Feng, we must at least own 51% of this company. This is what Microsoft should do!” Paul said.
Paul had said what many directors are thinking. We are Microsoft, and we are the world’s most valuable company. All this while we have been acquiring other companies, and partnering with another company is already an exception. How can we still not own the majority of the shares?
Even if they must let the other party own more shares, they cannot allow the other party to have absolute control. This means Microsoft will have no say in the company, and Microsoft will be a laughing stock to other companies.
Ballmer said. “Paul, we also know this. Microsoft should own the majority of shares, but we are not good at everything. Although I believe that if we are willing to invest, we can also develop the best console, why should we spend more money when we can spend less? Also, this will lower our risk. What’s wrong with this?”
“Ballmer, I know you are close to Feng, but you should stand on our side and not help him!” Paul Allen shouted.
Ballmer is pissed as he is also a shareholder and director of Microsoft. Although he does not own as many shares as Paul Allen, Paul Allen is not Bill Gates. Who is he to criticize him?
“I am speaking from Microsoft’s point of view, unlike someone who is trying to affect the company’s decision because of a personal feud!”
The company’s number two and three had started arguing, and the rest of the directors dare not speak up. All of them turn and look at Bill Gates, as Bill Gates is the only person that can stop this fight.
“You two! I will repeat this! This is a meeting, and you all can argue your points, but you all are not allowed to attack each other! We are all doing this for Microsoft and ourselves! Let’s vote to decide this matter. I agree to let Feng owns the majority shares of this joint venture!”
Paul Allen is shocked to hear Bill Gates agree to this condition. Ballmer immediately raises his hand to show his support, and the other directors also raise their hands. Everyone, except for Paul Allen, agreed to this proposal.
Paul Allen immediately stood up and left the meeting room. As he is leaving, he heard Bill Gates say. “This motion is passed!”